The present invention relates to software which is adapted to obtain, control, maintain, and coordinate various investment methodologies for stagnate, underutilized and/or not utilized tangible asset or assets that have a monetary value. Typically, many tangible assets of value (e.g., art paintings, rare sculptures) are either stored, or exhibited in art museums, or are owned by governmental controlled collectibles, libraries, art and antiquities dealers, auction and consignment houses, galleries or in other private and other public collections (generally referred to herein as the “art holders”). In some cases, these art holders exhibit the art asset to the public (such as, for example, a museum). In other cases, these art holders will showcase the art only to selected individuals or groups due to the uniqueness, monetary value or historical value of the art asset (such as, for example, the artifacts found with or alongside the King Tut collection). In still other cases, some art holders decide not the showcase the art asset at all, and instead, place the art asset in private locations (such as a rare painting placed or stored in a residence or storage).
In many cases, museums warehouse a large percentage of their art assets for display within the museum as an exhibit, gallery or other forms of display to the general public. However, while the art asset may be valuable and increasing in value with time, museums typically have a hard time taking advantage of the value or increasing value of their art assets. Indeed, it is well known that museums are continually in search of financial sources to maintain its art asset collection, obtain new art asset collections, and/or obtain funding to either increase the size of the museum or increase the type of events offered to the public. Stated differently, private collectors, owners of rarities, owners of historical properties, public collectors, art museums, historical museums, transportation museums and other types of museums or owners of assets having inherent value currently raise capital for purchasing art work, investing in new exhibits and for general working capital needed for the curators, directors, workers and security teams needed to operate the museum. Rarities, as that term is used herein, includes those items whose value is based on historical presence, or one which is typically non-reproducible and having a value due to its uniqueness. Currently, museums and other exhibitors of all art forms must raise financial capital from private donations, contributions and from governmental sources. Museums, for example, compete for donations with other worthy causes, such as hospitals, childcare and other organizations for capital. Furthermore, most museums, given shortfalls in governmental appropriation and budget reductions, must rely on donations from companies and individuals. And, art holders face further monetary crisis during times of recession, because during such times, companies, individuals, investment trusts and other financial contributors reduce their donations under the belief that art assets do not provide the liquidity required.
There are further risks for art holders. For example, art holders typically do not look to short term and long term debt and other debt vehicles as a potential funding source because of the high risk associated with such vehicles. Moreover, art holders typically do not look to venture capital and similar sources of funding because such funding is considered too risky for most public institutions in the industry as well as for most private collectors. The resulting restrictions in terms of budget cuts, budget cutbacks and financial restrictions due to high risk or governmental restrictions prevent museums, artists and other art holders from expansion, opportunity and financial gain.
Additionally, it is difficult for the art holder to sell or transfer art to other art holders because there is no centralized system in which to offer and/or view art assets which are available. However, it is clear that one's art asset portfolio has the potential to significantly increase one's capital investment in the art asset while at the same time, allowing one to continue an ownership share of the art asset and allowing one to continue sharing the art asset with the public.
Prior to the present invention, investment opportunities with sufficient liquidity have generally been limited to equities and fixed income with real estate finding its way into portfolios with the advent of real estate investment trusts (“REITS”). Moreover, prior to the present invention, art assets were valued (or, appraised) through a subjective process, usually with no to little data points (primarily due to the fact that art assets are geographically diverse, and the appraisers have no way of centrally sharing appraisal values with other appraisers or viewing a central repository of such information). The present invention aims to assist such art holders by providing art asset owners (and potential art asset owners) a computerized method and system for (without limitation) storing, sharing, selling or owning art assets on a worldwide basis, while at the same time providing sufficient liquidity in the art asset. Moreover, the present invention aims to assist art holders with initially identifying the appraisal value of the art asset through a grading process with input from appraisers from throughout the world to provide numerous appraisal data points in a central repository database, and through subsequent public demand, move the initial appraisal value of the art asset in to a market driven value, thereby significantly increasing the overall value of the art asset or art asset pool. Additionally, the present invention will help combine an art holder's desire to obtain additional financing with a party who desires to obtain an ownership interest in art without having to worry about physically storing or maintaining the art, and allows the art investor to more appreciate the art because the art investor is now a part-owner of the art.
One common problem among art owners is that they desire additional funding based on the art asset, but they do not want to relinquish physical control, possession or entire ownership over the art asset. The present invention solves this problem by allowing the art holder, through the implementation of a computer software system, to obtain financing from one or more investors for an ownership interest one or more art assets, while still allowing the art holder to maintain physical possession and control of the art asset. Thus, in the example of a museum, the museum may give up some ownership interest in the art asset while being able to maintain physical control and possession of the art asset (thereby, allowing the public to continue to view and appreciate the art asset). As recited throughout this invention, this invention is not limited to a single art asset, but can be applied to numerous art assets which are placed collectively into an art asset pool. Thus, the present invention provides the ability for an investor to invest not only in a single art asset, but to invest in one or more art asset pools. By analogy, the present invention is directed towards creating a mutual fund for art investors, allowing the art investor to obtain ownership rights in an art asset (or, art asset pool) without obtaining possessory rights of the art asset (or, art assets in the pool).
The present invention is intended for use with all art assets which are tangible in nature. Representative tangible assets as used in this invention, in one preferred embodiment, include paintings, drawings, sculptures and photographs. In another embodiment, representative assets could also include rare books and manuscripts, historical sites, furniture (antiques) and decorative arts, rare stamps and coins (both rare coins, bullion, precious metals, precious stones and other and all types of like commodities) ancient artifacts, pottery and glass, ceramics and other tangible assets. Assets, in still another embodiment, may include any type of coin, gold coins, platinum coins, silver coins, gold dusts, silver dusts, platinum bars, gold bars, genuine gold, karat gold, rubies, emeralds, diamonds, simulated diamonds, genuine platinum, karat platinum, paintings, precious metal, precious alloys, precious metals, precious ores or concentrates, antique coins, and rare coins, for example. As a broad example, “art asset” as used herein further refers to any and all forms of tangible assets which have value, such as, but not limited to, the works by art masters, primary art work, secondary art work, fine arts, contemporary works and modern works; of any historical period, cultural and geographical style, design and type. Assets may also include educational materials, scientific materials, electronic books or libraries, music memorabilia, sheet music, records, movies, films, motion pictures, compact discs, digital video discs, musical instruments, entertainment devices or any type of intellectual property. An asset may also include tangible collectibles which have value, such as, but not limited to, ancient historical artifacts, memorabilia, weapons, toys, stamps and coins (both rare coins, bullion, precious metals, precious stones and other and all types of like commodities), paper money, possessory money, sports memorabilia, musical instruments, costumes, entertainment memorabilia, scientific and engineering memorabilia, maritime objects, wartime objects, transportation objects, arms and armatures, antiquities, governmental collections and archives, private historical properties, governmental real property and monuments, school and institutional assets, auction and consignment assets, private collections, library assets, and other valued public and private collectibles.
As those of skill in the art will now come to realize, an art asset may comprise a single asset (such as a sixteenth century gold coin), or may be combined (or, pooled) with other art assets (such as sixteenth, seventh and eighteenth century gold coins), whether or not similar in nature (such as, for example, sixteenth, seventh and eighteenth century gold coins combined with sixteenth, seventh and eighteenth century paintings). Thus, the present invention allows for inventive adaptability, so that depending upon user input, each art asset pool will have a unique art asset characteristic which may be desired by art asset investors.